Northwood Investors Shopping London West Hollywood Hotel, Could Fetch $384M
The 226-room London West Hollywood at Beverly Hills is up for sale and could sell for roughly $384M. That would translate to about $1.7M per room and place the hotel among the most expensive sales per room in the Los Angeles area, according to Green Street.
The hotel at 1020 North San Vicente Blvd. in West Hollywood is expected to garner broad investor interest because it doesn't have any brand or management contracts, Green Street reports.
The hotel is owned by Northwood Investors, which bought the hotel in 2013 and renovated it. Eastdil Secured has the listing, per Green Street.
The sale of the 88-room Luxe Rodeo Drive Hotel, which Louis Vuitton parent company LVMH bought for $200M, or nearly $2.3M per room, holds the LA area's per-room price record, punched up by the fact that the property came with Rodeo Drive retail space and was prime for repositioning, Green Street reports.
Los Angeles hotels are working their way back from pandemic shutdowns. In January and February, luxury hotels averaged occupancy rates of 51.8%, Green Street said, citing data from STR. Although that is more than double where they were a year earlier, they are still well below the 76% average in 2019. Room rates were up almost 70% to an average of $583.77, Green Street said.
Some hotels are doing better than others. The Standard in Downtown LA and in West Hollywood, not far from The London, both closed during the pandemic and never reopened. The Sunset Strip Standard is reportedly being sold to hotelier Ian Schrager and Ed Scheetz and will reopen under a new brand, The Real Deal reported. Meanwhile, AEG plans to expand, adding 800 hotel rooms to its complex in Downtown that includes the J.W. Marriott and The Ritz-Carlton.